HomeMy WebLinkAbout11/07/2017 09 2018 CDBG and HOME Annual Action Plan - First Public MeetingBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 9.
For Meeting of: November 7, 2017
ITEM TITLE: Final public meeting to consider citizen comments; and resolution
adopting the proposed 2018 Annual Action Plan for Community
Development Block Grant (CDBG) and HOME Fund Programs
SUBMITTED BY: Joan Davenport, AICP, Community Development Director
Archie Matthews, ONDS Manager (509) 576-6761
SUMMARY EXPLANATION:
Every year the City of Yakima is required by the Federal Housing and Urban Development
Department (HUD) to provide an Annual Action Plan that outlines the City of Yakima's budget
plans for using Community Development Block Grant (CDBG) entitlement funds and HOME
I nvestment dollars to meet the needs of its low to moderate income citizens with "eligible
activities". The CDBG program has three primary objectives; to benefit low and moderate
income persons, to assist with problems relating to slum and blight, and to assist with urgent
health and welfare needs. The program can thus provide assistance in a broad range of activities
and services, but at least 70% of all funds must be spent on assisting people with issues related
to low income. The HOME Program can only assist low/moderate income persons with issues
relating to housing; which can range from new construction of single-family to rental housing and
down payment assistance for first time homebuyers. I nvestment of the federal funds received
through the CDBG and HOME programs is guided by the annual action plan. Following
considerable citizen input from many sources, under the guidance of Yakima City Council
members, and as recommended by the HUD regulations, the plan is a proposed budget for
FY2018 programs.
The 2018 Annual Action Plan has been advertised and available for written public comment from
October 2, 2017 through October 31, 2017 and any written comments received during the 30 day
comment period will be included in the final plan as submitted to HUD. This is the final
opportunity for public comments on the proposed 2018 Annual Action Plan DRAFT, which is
available at the City Clerk's Office or online at:
https://www.yakimawa.gov/services/neighborhood-development-services/files/AAP-2018.pdf
Written comments were received from RCDR and are included for consideration.
ITEM BUDGETED: Yes
OAF
STRATEGIC PRIORITY: Neighborhood and Community Building
APPROVED FOR
SUBMITTAL: ~City Manager
ct*��
STAFF RECOMMENDATION:
Conduct final public meeting and adopt resolution.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description
Upload Date
Type
D
Resolution 2018 Annual Action Plan CDBG, HOME
10/25/2017
Resolution
D
Draft 2018 Annual Action Plan for Yakima
10/25/2017
Backup Material
D
Summary of 2018 Proposed CDBG, HOME programs
10125/2017
Backup Material
D
History of City Entitlements
10/25/2017
Backup Material
D
Letters informing MCDR and OIC at possible 2018
10/25/2017
Backup Material
reductions
D
Written Comments from ROBB, on Action Plan
10/25/2017
Backup Material
D
Letters of Support from RCDR
10/25/2017
Backup Material
RESOLUTION NO. R -2017-
A RESOLUTION adopting the proposed 2018 Annual Action Plan for Community
Development Block Grant (CDBG) and HOME Fund Programs as
mandated by the Department of Housing and Urban Development
(HUD)
WHEREAS, the City of Yakima completed the Draft Annual Action Plan for 2018
as required annually by HUD as a requirement for receiving federal funds; and
WHEREAS, in order to access the federal CDBG and HOME funds for year 2018,
the city is required to submit an Annual Action Plan; and
WHEREAS, the Office of Neighborhood Development Services fulfilled the
requirements for two public input meetings held on October 17, 2017 and November 7,
2017 and provided an open 30 day written comment period from October 2, 2017 through
October 31, 2017; and
WHEREAS, there is uncertainty in the federal funding amounts for the CDBG and
HOME funds for the year 2018, and therefore, it is contemplated that in the event funding
is not as expected, the proposed 2018 Annual Action Plan will be amended by staff; and
WHEREAS, the City Council of the City of Yakima finds it is in the best interest of
the City and its residents to adopt the proposed 2018 Annual Action Plan for CDBG and
HOME Fund Programs, with the understanding that the funding amounts may change due
to federal government decisions, and such changes would require City staff to amend the
action plan to conform with funding changes; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
That the City Council of the City of Yakima adopts the 2018 Annual Action Plan
and the City Manager of the City of Yakima is hereby authorized to direct staff to
submit the Annual Action Plan to HUD as required. In the event the federal
government provides an amount of funding different than that in the 2018 Annual
Action Plan, the City Council directs City staff to make appropriate amendments to
the plan to conform with the funding received.
ADOPTED BY THE CITY COUNCIL this 7th day of November, 2017.
ATTEST:
Sonya Claar Tee, City Clerk
Kathy Coffey, Mayor
4
City of Yakima
Office of Neighborhood Development Services
Community Development Block Grant
HOME Investment Partnership:
DRAFT
2018 Annual Action Plan
Executive Summary
AP -05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
As the annual recipient of federal Community Development Block Grant (CDBG) and HOME Investment
Partnership (HOME) funds, the City of Yakima is required to engage in a careful planning process. This
process involves a long-term five-year strategy, which is detailed in a document called the Consolidated
Plan, and a subset of this document known as the Annual Action Plan. Each Action plan specifies the
things the City will do during the coming year to implement those steps it feels will lead to the
accomplishment of the goals set forth in the Consolidated Plan.
A key component of serving the needs of local residents is to meet with them, and listen to them as they
express their thoughts. ONDS follows a Yakima City Council adopted "Citizen Participation Plan" as
approved by HUD. This plan dictates how the Office of Neighborhood Development Services conducts
citizen participation input meetings for both the Consolidated Plan and the Annual Action Plan.
Information is collected from City residents and others in a variety of ways. There are regular surveys
conducted of local citizens to ask about their needs and challenges. Meetings are held to provide the
opportunity for people to speak. And as required by HUD City staff meet with other providers of
services for low-income persons to hear about the things they feel are important. By the time the 2018
Action Plan is completed, City staff will have met with local residents on at least two occasions to share
information on the possible activities and hear their ideas as is outlined in the HUD mandated "Citizen
Participation Plan" as well as held a "Thirty Day Written Comment Period" on the proposed 2018
Annual Action Plan draft.
This document is the 2018 Annual Action Plan for the City of Yakima's 2015-2019 Consolidated Plan. The
format and content of the document is largely dictated by the US Department of Housing and Urban
Development (HUD) regulations. These regulations provide a framework that helps ensure that each
dollar invested meets local priorities and complies with Federal law.
Congress implemented the CDBG program in order to provide assistance to communities such as Yakima
as they work to provide various forms of assistance to low and moderate -income individuals and
families. According to law, the CDBG program has three primary objectives; to benefit low and
moderate income persons, to assist with problems relating to slum and blight, and to assist with urgent
health and welfare needs. The program can thus provide assistance in a broad range of activities and
services; but at least 70% of all funds must be spent on assisting people with issues related to low
income.
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The HOME program is of more recent origin. It can only assist low/moderate income persons with issues
relating to housing. These services can range from new construction of single family or rental housing
and down payment assistance to assistance with rents. While lacking the flexibility of the Block Grant
program, the HOME program has provided valuable services to hundreds of families here in Yakima. By
combining both programs under on strategy the City of Yakima has provided a broad-spectrum
approach to helping the many local residents these programs serve.
2. Summarize the objectives and outcomes identified in the Plan
This could be a restatement of items or a table listed elsewhere in the plan or a reference to
another location. It may also contain any essential items from the housing and homeless needs
assessment, the housing market analysis or the strategic plan.
This information is contained in the "AP -38 Project Summary contained within this 2018 Annual Action
Plan.
3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or
projects.
The 2018 Annual Action Plan will be the fourth year of the 2015-2019 Consolidated Plan. The Annual
Action Plans will report progress on addressing priority housing and non -housing community
development needs each year from 2015-2019 as Yakima ONDS has annually reported progress for
previous 2010-2014 Consolidated Plan.
A detailed breakdown report of prior year uses and performances has also been provided in the yearly
Consolidated Annual Performance & Evaluation Report (CAPER) which is available at the City of Yakima's
Office of Neighborhood Development Office or online at Yakima's webpage (www.ci.yakimawa.gov)
4. Summary of Citizen Participation Process and consultation process
Summary from citizen participation section of plan.
To be determined at a later date.
5. Summary of public comments
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This could be a brief narrative summary or reference an attached document from the Citizen
Participation section of the Con Plan.
To be determined at a later date.
6. Summary of comments or views not accepted and the reasons for not accepting them
To be determined at a later date.
7. Summary
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PR -05 Lead & Responsible Agencies — 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan
Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant
program and funding source.
Agency Role
Name Department/Agency
CDBG Administrator
YAKIMA
Office of Neighborhood Development Services
HOME Administrator
YAKIMA
Office of Neighborhood Development Services
Table 1— Responsible Agencies
Narrative (optional)
The City of Yakima's Office of Neighborhood Development Services (ONDS) is the lead agency for preparing Yakima's Consolidated Plan and
Annual Action Plans, and has been designated to be responsible for the planning, development, and implementation of its CDBG and HOME
programs by the Yakima City Council.
Consolidated Plan Public Contact Information
Any questions or concerns about this Consolidated Plan should be directed to:
Archie M. Matthews
The Office of Neighborhood Development Services
112 S. 8th Street
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Yakima, WA. 98902
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AP -10 Consultation — 91.100, 91.200(b), 91.215(1)
1. Introduction
Consultation for the Consolidated Plan includes the use of consultants generating statistical information
needed to establish needs, gaps and barriers. ONDS consults with public and private agencies and
citizens, including a Housing Advisory Committee composed of the Yakima Housing Authority, Yakima
Valley Partners Habitat for Humanity, Office of Industrilization Center (OIC), as well as Yakima County,
this is also known as the Community Development Advisory Board providing review and feedback.
Provide a concise summary of the jurisdiction's activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health
and service agencies (91.215(1))
ONDS consults with public and private agencies that provide assisted housing, health services, and social
and fair housing services -especially those focusing on services to children, the elderly, persons with
disabilities, persons with HIV/AIDS and their families, and homeless persons through the Homeless
Network of Yakima County staffed by the Yakima County Department of Human Services.
ONDS also consults with Washington State Department of Commerce (CTED) and the Yakima Housing
Authority (YHA) to assure that the Yakima Consolidated Plan is inclusive and addresses statutory
purposes.
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless persons (particularly chronically homeless individuals and families, families with
children, veterans, and unaccompanied youth) and persons at risk of homelessness.
The Yakima Valley Council of Governments (YVCOG) is the coordinator of the Yakima County Homeless
Planning Policy Council Advisory Committee . The Yakima Valley Council of Governments is composed of
a broad group of Yakima County public, non-profit, and private human services agencies including many
of the groups listed above. YVCOG conducts regular meetings and agendas, updated the Yakima County
Continuum of Care Plan, and organized the annual Point -In Time Homeless Persons Count. The City of
Yakima continues to coordinate and assist YVCOG with it's efforts to assist persons at risk of
homelessness and chronically homeless individuals and family.
The City of Yakima works with YVCOG to strategize, plan and assist with Emergency Winter Shelters for
the Homeless on a year by year basis, in order to ensure safe, decent, emergency winter shelters that
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are both suitable for the homeless but also suitable for the residents and businesses within those
neighborhoods.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in
determining how to allocate ESG funds, develop performance standards for and evaluate
outcomes of projects and activities assisted by ESG funds, and develop funding, policies and
procedures for the operation and administration of HMIS
The City of Yakima has consulted with Yakima Valley Council of Governments (YVCOG) and other
Continuum of Care providers through joint affordable housing committee meetings, through email as
well as reviewing individual service provider websites. Yakima Valley Council of Governments (YVCOG)
hold scheduled meetings as well as request input from agencies as well as citizens on a regular
basis. The City of Yakima works in partnership with YVCOG throughout the Strategic Planning process for
both Yakima County and the City of Yakima to develop program performance standards and evaluate
and adjust outcomes and develop funding, policies and procedures for a wide variety of programs and
fundings, including the administration of the HMIS.
2. Describe Agencies, groups, organizations and others who participated in the process
and describe the jurisdiction's consultations with housing, social service agencies and other
entities
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Table 2 —Agencies, groups, organizations who participated
1
Agency/Group/Organization
Catholic Charities Housing Services
Agency/Group/Organization Type
Housing
Services - Housing
Services -Children
Services -Elderly Persons
Services -Persons with Disabilities
Service -Fair Housing
What section of the Plan was addressed by
Housing Need Assessment
Consultation?
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non -Homeless Special Needs
Market Analysis
Anti -poverty Strategy
Briefly describe how the Agency/Group/Organization
ONDS conducted meetings of the Community Development Advisory Board
was consulted. What are the anticipated outcomes of
providing review and feedback of which Catholic Charities Housing Services (CCHS)
the consultation or areas for improved coordination?
was an interegal part of. As in the past CCHS has assisted ONDS with developing
housing market strategies as well as developing affordable housing projects within
the City of Yakima for First Time Homebuyers, as well as affordable housing
opportunities for low to moderate income Elderly and disabled.
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Agency/Group/Organization
OIC OF WASHINGTON
Agency/Group/Organization Type
Housing
Services - Housing
Services -Children
Services -Elderly Persons
Services -Education
Service -Fair Housing
What section of the Plan was addressed by
Housing Need Assessment
Consultation?
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Market Analysis
Economic Development
Anti -poverty Strategy
Lead-based Paint Strategy
Briefly describe how the Agency/Group/Organization
As a member of the Community Development Advisory Board a member of OIC
was consulted. What are the anticipated outcomes of
attended committee meetings and provided review and feedback of Housing
the consultation or areas for improved coordination?
needs, affordable housing, homeless issues, lead based paint strategy, as well as
Market Analysis research and Economic Development Trends.
3
Agency/Group/Organization
YAKIMA VALLEY PARTNERS HABITAT FOR HUMANITY
Agency/Group/Organization Type
Housing
Services - Housing
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What section of the Plan was addressed by
Housing Need Assessment
Consultation?
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non -Homeless Special Needs
Market Analysis
Economic Development
Anti -poverty Strategy
Briefly describe how the Agency/Group/Organization
Yakima Valley Habitat for Humanity as a member of the Community Development
was consulted. What are the anticipated outcomes of
Advisory Board attends committee meetings and provides review and feedback for
the consultation or areas for improved coordination?
a wide variety of Affordable Housing issues, Homeless needs and strategy as well
as Anti -poverty Strategy.
4
Agency/Group/Organization
YAKIMA COUNTY
Agency/Group/Organization Type
Housing
Services - Housing
Services -Children
Services -Elderly Persons
Services -Persons with Disabilities
Services -Persons with HIV/AIDS
Services -Victims of Domestic Violence
Services -homeless
Services -Employment
Service -Fair Housing
Services - Victims
Other government - County
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What section of the Plan was addressed by
Homeless Needs - Chronically homeless
Consultation?
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non -Homeless Special Needs
Market Analysis
Lead-based Paint Strategy
Briefly describe how the Agency/Group/Organization
Meetings with the Yakima County in consultation about affordable housing and
was consulted. What are the anticipated outcomes of
homelessness issues within the City of Yakima. Continued coordination in
the consultation or areas for improved coordination?
developing and maintaining affordable housing as well as continued cooperation in
dealing with the Yakima Valley Council of Governments.
5
Agency/Group/Organization
Yakima Housing Authority
Agency/Group/Organization Type
Housing
PHA
Services - Housing
Publicly Funded Institution/System of Care
What section of the Plan was addressed by
Housing Need Assessment
Consultation?
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Market Analysis
Anti -poverty Strategy
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Briefly describe how the Agency/Group/Organization The Director Lowel Krueger is a member of the Community Development Advisory
was consulted. What are the anticipated outcomes of Board and attended meetings as well as consulted via telephone and email. The
the consultation or areas for improved coordination? City of Yakima continues to work closely with the Yakima Housing Authority to
develop and maintain affordable housing.
Identify any Agency Types not consulted and provide rationale for not consulting
No specific Agency was intentionally excluded from the consultation process as a 30 day written comment period will advertise and open to any
citizen or agency to give additional written comment, plus two advertised Public Hearings to give ample opportunity for input from individuals,
groups, departments and/or agencies.
Other local/regional/state/federal planning efforts considered when preparing the Plan
Name of Plan
Lead Organization
How do the goals of your Strategic Plan overlap with the goals of each plan?
Yakima County
The City of Yakima works hand in hand with YVCOG in assisting the local community with a
Continuum of Care
Council of
variety of programs and goals, such as affordable housing, Yakima County Economic
Government
Development and Assisting the Homeless
The Urban Area Comprehensive Plan (UACP) was developed in accordance with the Growth
Management Act (GMA) to address growth issues in the City of Yakima and adjacent Urban
Yakima Urban Area
Growth Area. It represents the community's policy plan for growth over the next 20 years. It will
The City of Yakima
Comprehensive Plan
assist the management of the City by providing policies to guide decision-making for growth,
Planning Dept.
2025
development and public services. Cities are required to update their plans every ten years. The
original Yakima GMA Plan was adopted in 1997 and Planned through the year 2015 and has been
updated and will carry the community forward through 2025
Table 3 — Other local / regional / federal planning efforts
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Narrative (optional)
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AP -12 Participation — 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation
Summarize citizen participation process and how it impacted goal -setting
To be determined
Citizen Participation Outreach
Sort Order
Mode of Outreach
Target of Outreach
Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
Table 4 — Citizen Participation Outreach
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Expected Resources
AP -15 Expected Resources — 91.220(c)(1,2)
Introduction
After ten years of slow steady entitlement reduction from 2007 when the CDBG budget was $1,210,374 and in 2017 was $864,848 with 2007
HOME Investment dollars at $632,684 and in 2017 at the reduced amount of $372,030, we are expecting the 2018 program year to possibly be
reduced even more.
These reductions are at the federal funding level and the City of Yakima is continually challenged to continue programs with reduced funds in
order to continue to serve it's low to moderate income citizens to the best of it's ability.
Furthermore, any decision to change CDBG funding greater than 10% increase or decrease in any program funding line after the public comment
period received by the City of Yakima ONDS will trigger an amendment as per the adopted citizen participation plan. Although any increase or
decrease in funding directly attributed to the Federal Allocation will be added or subtracted to the largest funded program as currently funded
through those federal entitlement allocations. (CDBG would be either added or subtracted from the Single Family Rehabilitation program and
HOME funds would be added or subtracted from the New Construction program line. Any addition or subtraction to or from either of these
program lines equaling more than 10% would trigger a substantial amendment to the Annual Action plan per the currently adopted Citizen
Participation Plan.)
Anticipated Resources
Program
Source of
Funds
Uses of Funds
Expected
Amount
Available Year
1
Expected
Amount
Narrative
Description
Annual
Program
Prior Year
Total:
Allocation:
Income: $
Resources:
$
Available
$
$
Remainder
of ConPlan
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Program
Source of
Uses of Funds
Expected
Amount
Available Year
1
Expected
Narrative
Annual
Program
Prior Year
Total:
Funds
Amount
Description
Allocation:
Income: $
Resources:
$
Available
$
$
Remainder
of ConPlan
CDBG
public -
Acquisition
federal
Admin and Planning
Economic Development
Housing
Public Improvements
Public Services
864,848
63,070
307,779
1,235,697
0
HOME
public -
Acquisition
federal
Homebuyer assistance
Homeowner rehab
Multifamily rental new
construction
Multifamily rental rehab
New construction for
ownership
TBRA
372,030
94,300
1,608,518
2,074,848
0
Table 5 - Expected Resources — Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how
matching requirements will be satisfied
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22
If appropriate, describe publically owned land or property located within the jurisdiction that
may be used to address the needs identified in the plan
Currently there is no publically owned land or property under consideration for use that isn't already
addressed in other parts of the plan.
Discussion
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Annual Goals and Objectives
AP -20 Annual Goals and Objectives
Goals Summary Information
Sort
Goal Name
Start
End
Category
Geographic
Needs
Funding
Goal Outcome Indicator
Order
Year
Year
Area
Addressed
1
Single Familiy
2015
2019
Affordable Housing
CITY OF
Housing
CDBG:
Homeowner Housing Rehabilitated:
Rehabilitation Program
YAKIMA
priority
$509,855
90 Household Housing Unit
needs
2
Community
2015
2019
CITY OF
Housing
CDBG:
Other: 1 Other
Development Block
YAKIMA
priority
$193,066
Grant Administration
needs
3
Public Services
2015
2019
Non -Housing
CITY OF
Housing
CDBG:
Public service activities other than
Community
YAKIMA
priority
$145,907
Low/Moderate Income Housing
Development
needs
Benefit: 7100 Persons Assisted
Public service activities for
Low/Moderate Income Housing
Benefit: 4 Households Assisted
Other: 7500 Other
4
Economic Development
2015
2019
Non -Housing
CITY OF
CDBG:
Jobs created/retained: 7 Jobs
Community
YAKIMA
$25,000
Development
5
Administrative HOME
2015
2019
Affordable Housing
CITY OF
Housing
HOME:
Other: 1 Other
costs
YAKIMA
priority
$50,277
needs
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Sort
Goal Name
Start
End
Category
Geographic
Needs
Funding
Goal Outcome Indicator
Order
Year
Year
Area
Addressed
year.)
6
First Time
2015
2019
Affordable Housing
CITY OF
Housing
HOME:
Direct Financial Assistance to
Homeownership
YAKIMA
priority
$100,000
Homebuyers: 2 Households
Program
needs
Assisted
7
Community Housing
2015
2019
Affordable Housing
CITY OF
Housing
HOME:
Homeowner Housing Added: 4
Development
YAKIMA
priority
$78,314
Household Housing Unit
Organization
needs
8
New Construction
2015
2019
Affordable Housing
CITY OF
Housing
HOME:
Homeowner Housing Added: 4
YAKIMA
priority
$275,830
Household Housing Unit
needs
Table 6 — Goals Summary
Goal Descriptions
1
Goal Name
Single Familiy Rehabilitation Program
Goal
The Single Family Rehabilitation Program includes;
Description
. The Senior/Disabled Homeowner Emergency Repair Program
• The Senior/Disabled Homeowner Wheel Chair Ramp Program
The Senior/Disabled Exterior Paint Program (This program is subject to availability to qualified projects and funding year to
year.)
2
Goal Name
Community Development Block Grant Administration
Goal
This program deals with the costs associated with the Administration of the Community Development Block Grant (CDBG)
Description
funds including personnel, equipment, and associated costs as per HUD regulations involving program administration.
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3
Goal Name
Public Services
Goal
Public Service Programs assists with;
Description
. "Public Service Programs" administered through OIC of Washington in operating programs through the South East
Community Center.
• Graffiti Abatement
• Senior/Disabled Energy Assistance
• Landlord/Tenant Counseling
4
Goal Name
Economic Development
Goal
The Economic Development budget line is to assist with either "Job Creation and/or Job Retention" as per HUD Eligible
Description
Activities.
5
Goal Name
Administrative HOME costs
Goal
HOME administrative costs are associated with the cost of administering the HOME Investment funds to include personnel,
Description
office equiptment, etc. The HOME program allows for a maximum amount of 10% of the yearly total HOME Investment
entitlement to be used for HOME administration.
6
Goal Name
First Time Homeownership Program
Goal
The First -Time Homeownership program assists qualified low to moderate income first time homeowners with assistance in
Description
the form of a soft -second mortgage in conjunction with their first mortage bank loan. Monthly payments may be set
according to the payback affordability by the buyer and deferred until five years at which time their affordability will be
reviewed until they are deemed to have the affordability to make payments on the soft second mortgage.
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Goal Name
Community Housing Development Organization
Goal
As per HUD eligible requirements, a minimum of 15% of an "Entitlements" HOME Investment funds must be used in
Description
supporting a Community Housing Development Organization (CHDO). This program assists local qualified CHDO's with the
development, construction and/or assistance to qualified housing projects within the City of Yakima in assisting in the
construction of affordable housing units.
8
Goal Name
New Construction
Goal
As an eligible HOME Investment program, this program goal is to add new construction units as either single family
Description
residential dwellings or may be used in partnership with a Community Housing Development Organization (CHDO) in the
construction of affordable apartment units or transitional housing units.
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Projects
AP -35 Projects — 91.220(d)
Introduction
Projects
# Project Name
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved
needs
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AP -38 Project Summary
Project Summary Information
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N9
AP -50 Geographic Distribution — 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and
minority concentration) where assistance will be directed
ONDS programs are designed to be application driven and City Wide, to enable the City of Ykaima to
help as many low to moderate income applicants as possible within the entire city limits of Yakima.
Geographic Distribution
Target Area Percentage of Funds
CITY OF YAKIMA 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
Low to Moderate income citizen's are located city wide and it is not the wish or design by the City of
Yakima to directly or indirectly "steer" people of any race, creed, color or financial level, be it low to
moderate or otherwise into any designated area, real or otherwise. Therefore, the programs are
offered city wide, to qualified appicants.
Discussion
The City of Yakima does not limit any CDBG or HOME Investment funding to any specific geographical
area and all programs are designed to assist eligible applicants and funding within the entire city limits
of Yakima as appropriate.
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iE
Affordable Housing
AP -55 Affordable Housing — 91.220(g)
Introduction
The main focus of the City of Yakima through ONDS in using both CDBG and HOME Investment funds is
"Affordable housing". The Single Family Rehabilitation program is focused on rehabilitation of existing
housing to enable the homeowners to continue to reside in their affordable housing, through the
Senior/Disabled Emergency Home Repair Program to include; the Senior/Disabled Wheel Chair ramp
program, the Exterior Paint Program, the Senior/Disabled Energy assistace program.
ONDS also supports and encourages Affordable housing through the use of HOME funds for; the First
Time Homebuyers Program, the New Construction Program and the use of a minimum of 15% of yearly
entitlement HOME funds in supporting Affordable housing though certified CHDO/s
One Year Goals for the Number of Households to be Supported
Homeless 0
Non -Homeless 90
Special -Needs 25
Total 115
Table 9 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through
Rental Assistance 0
The Production of New Units 4
Rehab of Existing Units 90
Acquisition of Existing Units 0
Total 94
Table 10 - One Year Goals for Affordable Housing by Support Type
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Discussion
Due to the reduced Federal Entitlement funds from HUD, the City of Yakima has cut a number of
programs and continues to serve a very limited number of a growing number of Senior/Disabled
homeowners with severe Emergency repairs such as; no heat, no power, no water, no sewer,
deteriorated roofs that have become insurance concerns that may lead to cancellation.
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AP -60 Public Housing — 91.220(h)
Introduction
The City of Yakima continues to support the Yakima Housing Authority although indirectly. In the past
the City of Yakima has supported specific facilities through various ways and even though budget
restrictions severely limits the Cities participation in current projects, each request of the Housing
Authority is reviewed individually and participation is given consideration through the Yakima City
Council as are other funding requests.
The Office of Neighborhood Development as the local environmental representative for HUD projects
has worked with the Yakima Housing Authority to enable projects to have the proper documentation to
meet the HUD regulation criteria needed for those specific projects as requested by the Housing
Authority.
Actions planned during the next year to address the needs to public housing
The City of Yakima Office of Neighborhood Development Services expects to continue to partner and
support the Yakima Housing Authority as our federal limited budget will allow. Specific projects and
funding requests will be analized and give consideration by due process taking all consideration of the
most beneficial use of entitlement funds.
ONDS also expects to continue to support the Yakima Housing Authority with environmental review and
documentation as requested by the Yakima Housing Authority.
Actions to encourage public housing residents to become more involved in management and
participate in homeownership
The Yakima Housing Authority encourages resident involvement with programs like our Resident
Advisory Board (RAB). The (RAB) provides the YHA and the residents with a forum for sharing
information about the Agency's Annual Plan. RAB membership is comprised of individuals who reflect
and represent the residents assisted by the PHA. The role of the RAB is to assist the PHA in developing
the PHA Plan and in making any significant amendment or modification to the Plan. In addition, Yakima
Housing Authority is an active participant in crime free rental housing which allows our residents to be a
part of the local block watch and we participate every year, inviting our residents and local
organizations, in the National Night Out.
The YHA also participates in the Yakima County Asset Building coalition and they are establishing a
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partnership with YV-CAN for the Union Gap and Yakima area. YHA is also in the process of collaborating
with the AmeriCorps VISTA Educational Project with the goal of every eligible resident signing up for the
college bound scholarship.
Lastly, YHA is administering the Family Self -Sufficiency (FSS) Program. This program enables families
assisted through the HCV program to increase their earned income and reduce their dependency on
welfare assistance and rental subsidies.
If the PHA is designated as troubled, describe the manner in which financial assistance will be
provided or other assistance
The Yakima Housing Authority is not designated as "Troubled".
Discussion
The Yakima Housing Authority continues to do an extrodinary job in assisting Yakima residents with
decent, safe, affordable housing through it's many diverse housing programs. The City of Yakima looks
forward to continuing our partnership with the YHA to provide this type of housing to our citizens.
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AP -65 Homeless and Other Special Needs Activities — 91.220(i)
Introduction
Yakima Valley Council of Governments (YVCOG) is the coordinator of the Yakima County 10 -Year
Homeless Housing Plan. Yakima Valley Council of Governments (YVCOG) is composed of a broad group
of Yakima County public, non-profit, and private human service agencies. Yakima Valley Council of
Governments (YVCOG) conducts regular meetings and agendas, updated the Yakima County Continuum
of Care Plan, and organized annual Point -In -Time Homeless Persons Count.
The City of Yakima recognized homelessness as the most severe housing problem and therefore does it's
best in trying to keep the most at risk population to become homeless, in their existing homes using
both the CDBG funds for the Single Family Rehabilitation programs. These programs are designed to
help the high risk Elderly and Disabled with Emergency Rehabilitation, Wheel chair ramps, and Exterior
Paint programs in hopes that this will continue to allow them to occupy their current affordable housing
situations.
ONDS also strives to support afforadable housing with its Home Ownership programs; The First Time
Homeowner Program, the New Construction Program and the direct and indirect support of certified
Community Housing Development Organization in creating new single family housing that is decent, safe
and affordable. Thus either directly affecting the homeless by giving them the opportunity to own their
first home, or by indirectly allowing someone in either a rental situation or a public housing situation to
buy their first home and thereby indirectly opening up another affordable rental or public housing unit
for use by an otherwise homeless individual or family.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness
including
Reaching out to homeless persons (especially unsheltered persons) and assessing their
individual needs
The City of Yakima continues to support the Yakima County Continuum of Care Plan as a city policy. The
first priority of the Continuum of Care is to maintain existing resources that serve the needs of the
homeless withing the community. The plan identifies new projects and services that fill critical gaps in
prevention services, outreach, emergency and transitional housing, support services and long-term
affordable housing.
Addressing the emergency shelter and transitional housing needs of homeless persons
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The City of Yakima continues to work with Yakima Valley Council of Governments (YVCOG) through the
Continuum of Care in addressing emergency shelters and transitional housing opportunities on
individual project basis.
Helping homeless persons (especially chronically homeless individuals and families, families
with children, veterans and their families, and unaccompanied youth) make the transition to
permanent housing and independent living, including shortening the period of time that
individuals and families experience homelessness, facilitating access for homeless individuals
and families to affordable housing units, and preventing individuals and families who were
recently homeless from becoming homeless again
Due to the severly limited Federal funds received by the City of Yakima through reduced entitlements,
the city is unable to address this particular need until additional funding becomes available.
Helping low-income individuals and families avoid becoming homeless, especially extremely
low-income individuals and families and those who are: being discharged from publicly
funded institutions and systems of care (such as health care facilities, mental health facilities,
foster care and other youth facilities, and corrections programs and institutions); or, receiving
assistance from public or private agencies that address housing, health, social services,
employment, education, or youth needs.
The City of Yakima through it's Senior/Disabled Emergency Home Repair program is often contacted by
local hospital and nursing care facilities about Seniors and/or Disabled homeowners that need emergecy
repairs or wheel chair ramps to be allowed to return to their homes after being released from these care
facilities.
Discussion
Due to severely limited resources the City of Yakima continues to direct it's attention to assisting
Senior/Disabled Homeowners through it's Emergency Home Repair programs to enable these frail
elderly and disabled to remain in their homes and thereby not becoming homeless and adding to the
Continuum of Care's burden with additional homelessness.
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37
AP -75 Barriers to affordable housing — 91.220(j)
Introduction:
The biggest barrier faced by the local entitlement jurisdiction is the past to present federal reduction of
funds allocated by HUD to the City of Yakima for Affordable Housing. Not to mention the ever
increasing amount of administration burden that far out weights the amount of funds that is actually
used to assist those in need. Not to be misconstrued as the "Administration" cost that is held captive by
the HUD designated maximum cap, but the reporting and recording burdens that are put in place that
significantly increase the cost of every single project. To include the Monitoring, Reporting of projects
as Eligible Activities, Outcomes and Performance Measures, Contractor Monitoring, Davis Bacon
reporting, Section 3 reporting, Minority Monitoring Reports, as well as Individual Program reporting
such as America Recovery and Reinvestment Act (ARRA) and Neighborhood Stabilization Program (NSP).
Actions it planned to remove or ameliorate the negative effects of public policies that serve
as barriers to affordable housing such as land use controls, tax policies affecting land, zoning
ordinances, building codes, fees and charges, growth limitations, and policies affecting the
return on residential investment
The City of Yakima continues to work with expanding economic development activities to bolster the
local economy and spur building investment towards the construction of more affordable residential
investments.
Discussion:
The effective use of Federal allocations to the responsible local entities with a measured reserve of
responsible recording and reporting is the only way of effectively reducing the barrier to affordable
housing at the local level. Increasing the benefit to the low and moderate income workforce that has so
effectively made our great county what it is, is the only way of increasing affordable housing and will not
only effectively raise the entire Nations living standard, but also serve it well economically. Continuing
to assist foreign countries with federal funds while reducing the federal allocations to entitlements has
brought affordable housing to where it is presently, not to mention our countries ever decreasing
popularity amongst other countries.
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AP -85 Other Actions — 91.220(k)
Introduction:
The City of Yakima continues to assist it's citizens with the use of Community Development Block Grant
(CDBG) and HOME Investlent funds to the best of it's ability through the Office of Neighborhood
Development Services by continuing to assist qualified low to moderate applicants with rehabilitation of
their existing homes, providing new single family dwellings to qualified First Time Homeowners, assist
the community with Painting Over Graffiti, Economic Development, Neighborhood development as well
as stabilization with the use of volunteers and volunteer agencies in cleaning up and keeping our
neighborhoods affordable and stable.
Actions planned to address obstacles to meeting underserved needs
The City of Yakima will continue to seek Federal funding as well as other available funding to overcome
the lack of sufficient funds to address all the underserved needs.
The City of Yakima Office of Neighborhood development services continues to partner with many non-
profits, local service organizations, other government and non-government agencies to assist in meeting
underserved needs.
Actions planned to foster and maintain affordable housing
As discussed throughout the Consolidated Plan and elsewhere in this Annual Action Plan, the City of
Yakima has a wide variety of programs directed at maintaining affordable existing housing through
Rehabilitation, as well as new single family dwellings through it's homeownership programs.
The City of Yakima continues to partner with local affordable housing agencies.
Actions planned to reduce lead-based paint hazards
As discussed in the Five Year Consolidated Plan, the City of Yakima Office of Neighborhood Development
Services aligns all it's Rehabilitation programs with the Washginton State Lead Based Paint regulations
and continues to "Presume" any disturbed paint surfaces are "possible lead hazzards" and thus are
treated according to the states regulations and HUD's lead based paint policy.
ONDS has both certifies supervisors and staff on hand to assess and address lead based paint as well as
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hires certified state lead based paint professionals in dealing with all projects with potential lead based
paint disturbed surfaces.
Actions planned to reduce the number of poverty -level families
The City of Yakima continues to address Economic Development opportunities to bring more businesses
and jobs to Yakima that pay decent living wages, as well as encourage growth and development of
existing opportunites to assist poverty level familes. See the Economic Development portion of the plan
for more information.
Actions planned to develop institutional structure
The City of Yakima continues to work with existing agencies and departments within Yakima as well as
consultants and other government bodies outside Yakima to strengthen and enhance the current
institutional structure. We will continue to seek out partnerships with organizations as well as private
enterprise to further develop the institutional structure.
Actions planned to enhance coordination between public and private housing and social
service agencies
The City of Yakima through the Office of Neighborhood Development Services will continue to
coordinate with Public and private housing and social service agencies through committee meetings and
consultation to coordinate services to the Yakima citizens.
Discussion:
The City of Yakima Office of Neighborhood Development Services has served it's community for
approximately 40 years through its vast a varied programs administering all kinds of federal and state
funds over the years towards the betterment of our community and the focus on affordable housing.
Partnerships with other organizations have been instrumental in continuing affordable housing within
Yakima with every agency struggling with funding from the past several years of economic struggle. The
City of Yakima has been focused on being a good steward of both CDBG and HOME Investment funds
and stretching those dwindling resources to the best of our ability in serving our community.
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The city of Yakima continues to strive for affordable housing with the assistance of the community,
neighborhoods and partners in effectively using our entitlement funds.
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Program Specific Requirements
AP -90 Program Specific Requirements — 91.220(1)(1,2,4)
Introduction:
Due to the limited HUD funding, the City of Yakima expends every dollar as effectively and efficiently as
possible to benefit it's citizens within its ONDS programs as per HUD's requirements. This means that
any program income, float -funded activities or section 108 loan guarentee funds are infused within
appropriate programs and the funding utilized as per HUD regulations concerning Eligible Activities to
meet HUD approved National Objectives.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(1)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the
Projects Table. The following identifies program income that is available for use that is included in
projects to be carried out.
1. The total amount of program income that will have been received before the start of the
next program year and that has not yet been reprogrammed 63,000
2. The amount of proceeds from section 108 loan guarantees that will be used during the year
to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has
not been included in a prior statement or plan 0
5. The amount of income from float -funded activities 0
Total Program Income: 63,000
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit
persons of low and moderate income.Overall Benefit - A consecutive period of one,
two or three years may be used to determine that a minimum overall benefit of 70%
of CDBG funds is used to benefit persons of low and moderate income. Specify the
years covered that include this Annual Action Plan. 100.00%
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Reference 24 CFR 91.220(1)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is
as follows:
Both "Non -Federal" and HOPE 3 funding sources are other forms of investment being used as
needed beyond those identified in Section 92.205.
The City of Yakima also uses Volunteer hours as accumulated Federal Match on HOME Investment
projects.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used
for homebuyer activities as required in 92.254, is as follows:
1. A description of the guidelines that will be used for resale or recapture of HOME funds when
used for homebuyer activities as required in 92.254, is as follows:
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When the City of Yakima makes a loan of HOME funds, that loan is secured by a promissory note
and deed of trust. Within those documents is language that specifies the disposition of funds in the
event of a sale.
The City of Yakima uses the "Full Recapture" provision in the following manner;
If the Homebuyer decides to sell, rent or dispose of the property at any time before the expiration of
the affordability period "Full Recapture" provision goes into effect, and in the even of sale,
foreclosure, will trigger repayment of the entire HOME direct subsidy loan amount (Recapture).
The Recapture amount is based on net proceeds from the voluntary sale or foreclosure. The net
proceeds of a sale are the sales price minus non -Home loan repayments and any closing costs.
As per regulation 92.545 (ii)(A) says in establishing the PJ's recapture requirements, the PJ is subject
to the limitation that when the recapture requirement is triggered by a sale (voluntary or
involuntary) of the housing unit, the amount recaptured cannot exceed the net proceeds, if any.
The net proceeds are the sales price minus superior loan repayment (other than the direct subsidy
HOME runds) and any closing costs. Furthermore, if there are no net proceeds- the amount to be
recaptured would be zero given that the City of Yakima may not recapture more than the amount of
net proceeds. If the net proceeds are some portion but do not fully equal your HOME direct subsidy
investment amount that would be the amount to recapture. To clarify, the recapture amount is
based on the direct HOME subsidy as per HUD requirements.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired
with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
1. with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
When the City of Yakima makes a loan of HOME funds, that loan is secured by a promissory note
and deed of trust. Within those documents is language that specifies the disposition of funds in the
event of a sale.
The City of Yakima uses the "Full Recapture" provision in the following manner;
If the Homebuyer decides to sell, rent or dispose of the property at any time before the expiration of
the affordability period "Full Recapture" provision goes into effect, and in the even of sale,
foreclosure, will trigger repayment of the entire HOME direct subsidy loan amount (Recapture).
The Recapture amount is based on net proceeds from the voluntary sale or foreclosure. The net
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proceeds of a sale are the sales price minus non -Home loan repayments and any closing costs.
As per regulation 92.545 (ii)(A) says in establishing the PJ's recapture requirements, the PJ is subject
to the limitation that when the recapture requirement is triggered by a sale (voluntary or
involuntary) of the housing unit, the amount recaptured cannot exceed the net proceeds, if any.
The net proceeds are the sales price minus superior loan repayment (other than the direct subsidy
HOME runds) and any closing costs. Furthermore, if there are no net proceeds- the amount to be
recaptured would be zero given that the City of Yakima may not recapture more than the amount of
net proceeds. If the net proceeds are some portion but do not fully equal your HOME direct subsidy
investment amount that would be the amount to recapture. To clarigy, the recapture amount is
based on the direct HOME subsidy as per HUD requirements.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is
rehabilitated with HOME funds along with a description of the refinancing guidelines required that
will be used under 24 CFR 92.206(b), are as follows:
1. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is
rehabilitated with HOME funds along with a description of the refinancing guidelines required
that will be used under 24 CFR 92.206(b), are as follows:
The City of Yakima currently has no plans for refinancing any existing debt secured by multifamily
housing that is rehabilitated with HOME funds. If such actions are decided by the Yakima City
Council, an amendment of the Consolidated Plan will be sought and the required refinancing
guidelines will be defined at that time as part of the Amendment.
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The City of Yakima chooses to use the Overall Benefit in the following manner- As a consecutive period
of "One Year, used to determine that a minimum overall benefit of 100% of CDBG funds is used to
benefit persons of low and moderate income.
The year specified is this Annual Action Plan of 2018
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►WN
47
City of Yakima
Office of Neighborhood Development Services
CDBG EXPENDITURES
HUD Programs (CDBG)
2018 Total
Estimated
Expenses
2017 Total
2016 Total
CDBG Single Family Rehabilitation 570.202 (b)
Senior f Disabled Rehabilitation
582,426
556,671
509,855
II Community 1 Public Services 570.201 (e)
Graffiti Abatement (approved by HUD 2007)
40,822
33,322
38,557
Fair Housing Counseling 507.201 (k)
25,450
25,450
27,450
Senior -Disabled Energy Assistance
4,900
3,455
4,900
❑IC of WA -CBD❑
60,000
67,500
75,000
Total
131,172
129,727
145,907
III Public Facilities 570.201 (C)
Southeast Community Cntr 1 Miller Park Activity Cntr
(or other public facilities in the neighborhood)
-
5,000
5,000
IV Code Compliance 570.202 ( C ) (Program Delivery)
-
-
61,500
V Economic Development 570.203 (b)
UNKNOWN CONTRACT
25,000
50,000
50,000
VI Administrative CDBG Costs 570.206 (slb)
184,650
185,350
193,066
(Frog)
Grand Totals 1 923,248 §M 926,748 IM 965,328 0
48
City of Yakima
Office of Neighborhood Development Services
HOME REVENUE & EXPENDITURES
2018
201T2016
Estimate
124 8953103 372,030
372,030
410,678
HUD HOME Program
124 8953104
HOME Program -Prior Year
124 8956114
HOME Program Interest Income 13,000
13,000
15,500
124 8956808
HOME Program Income 71,272
71,272
78,800
HOME Revenue Totals:
466,302.00
456,302.00
504,978.00
HOME EXPENDITURES
2018 Total 2017 Total 2016 Total
All activity is eligible under 92.205 (a) (1) Estimated
HOME PROJECT CATEGORIES: Expenses
First -Time Homeowner Assistance (up to $50,000 each)
10,000
10,000
100,000
Single -Family Home Rehabilitation
0
0
0
Community Housing Development Organization
317,805
317,805
76,665
(CHDO: HUD requirement, minimum of 15% of Entitlement)
New Construction
82,867
82,867
277,815
HOME Administrative Costs
45,630
45,630
50,498
TOTALS
456,3021
456,3021
504,978
456,302 456,302 604,978
Year
City of Yakima
Office of Neighborhood Development Services
Annual Entitlements
2000 through 2017
increaselDecrease
CDBG Entitlement from Prior Year HOME
49
Increase/Decrease
from Prior Year
2000
1,009,000
545,000
2001
1,199, 000
18.8%
688,000
26.2%
2002
1,168,000
-2.6%
684,000
-0.6%
2003
1,416,000
21.2%
690,285
0.9%
2004
1,389,000
-1.9%
691,919
0.2%
2005
1,350,348
-2.8%
672,757
-2.8%
2006
1,214,103
-%1%
633,910
-5.8%
2007
$
1,210,374
43%
$
632,684
-0.2%
$ (3,729)
$
(1,226)
2008
$
1,169,056
-3.4%
$
611,264
-3.4%
$ (41,318)
$
(21,420)
2009
$
1,185, 386
1 A%
$
682,410
11.6%
$ 16,330
$
71,146
2010
$
1,283,426
8.3%
$
677,752
-0.7%
$ 98,040
$
(4,658)
2011
$
1,073,172
-16.4%
$
597,053
-11.9%
$ (210,254)
$
(80,699)
2012
$
887,581
-17.3%
$
393,587
-34.1%
$ (185,591)
$
(203,466)
2013
$
912,849
2.8%
$
401,164
1.9%
$ 25,268
$
7,577
2014
$
841,886
-7.8%
$
406,607
1.4%
$ (70,963)
$
5,443
2015
$
856,440
1.7%
$
384,275
-5.5%
$ 14,554
$
(22,332)
2016
$
902,258
5.3%
$
410,678
6.9%
$ 45,818
$
26,403
2017
$
864,848
-4.1%
$
372,030
-9.4%
$ (37,410)
$
(38,648)
2017 Projected
$
902,258
-4.1%
$
410,678
0.0°I°
2017 Actual
$
864,848
$ (37,410)
$
372,030
$
(38,648)
6/15/2017 AS
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Angus[ 17, 2017
Maria DJ Rodriguez
Rural Community Development Resources
24 South 3nd Avenue
Yakima, WA 98901
Regarding: Future City of Yakima Economic Development funding
Dear Mrs. Rodriguez,
As you know, the City of Yakima receives Community Development Block Grant (CDBG)
funds from the Federal Housing and Urban Development agency. These funds have been
steadily reduced over the past several years and it has come to our attention that there is
discussion of discontinuing CDBG funds altogether in 2018 by the current Federal
Administration. Obviously we are hoping this isn't the case, but we have to be realistic about
future funding and the City's budget.
The money that is granted to RCDR from this office comes from the City's CDBG allotment.
Since the CDBG funding is unknown, the City must take precautionary measures regarding
future funding decisions. Thus we will be budgeting $25,000 for Economic Development out of
the CDBG funds, which is the eligible activity and funding source for your microenterprise
assistance project. This amount would, of course, only be available if the City of Yakima
receives a moderate reduction and the Council continued to approve the expenditure, and would
be totally eliminated if the CDBG program was discontinued.
Please also be aware that although in the past you have turned in your funding requests in
October of the preceding year, we did not receive funding amounts in 2016 and 2017 until the
month of June the following year. This year we could not take a funding request to the Yakima
City Council until we knew what our funding amount was, and, therefore, are even nuw at this
late date preparing to take your 2017 funding request forward to council in September. You may
want to keep this in mind when submitting your 2018 funding proposal.
If you have any questions or concerns regarding this contract, please contact me.
Thank ou,
t
Archie M Matthews
ONDS Manager
Cc: file
Ya*,r„m
51
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S, 201 i
Mr_ Steve Mitchell
CEO
Opportunities Industrialization Center
815 Fruitvale Boulevard
Yakima, WA 98902
Regarding; Future City of Yakima Economic Development funding
Dear Mr. Mitchell,
As you know, the City of Yakima receives Community Development Block Grant (CDBG)
funds from the Federal Housing and Urban Development agency. These funds have been
steadily reduced over the past several years and it has come to our attention that there is
discussion of discontinuing CDBG funds altogether in 2018 by the current Federal
Administration. Obviously we are hoping this isn't the case, but we have to be realistic about
future funding and the City's budget.
The money that is granted to OIC from this office comes from the City's CDBG allotment
Since the CDBG funding is unknown, the City must take precautionary measures regarding
future funding decisions. The City is getting ready to start evaluating the 2018 budget. It is
unknown the amount that might be available for budgeting towards your program next year, and
we wanted to make you aware of the possibility that the funding amount available could be
reduced. CDBG money, of course, would only be available if the City of Yakima receives a
moderate reduction and the Council continued to approve the expenditure, and would be totally
eliminated if the CDBG program was discontinued.
Thank you for providing services to the residents of Yakima and your continued commitment to
the City. If you have any questions or concerns regarding this contract, please contact me.
Thank you,
Archie NI Matthews
ONDS Manager
; WIN
52
October 5, 2017
To: Joan Davenport
City of Yakima
From: Maria DJ Rodriguez, Executive Director
Rural Community Development Resources
Re: 2018 CDBG Funding Request - Microenterprise Technical Assistance $50,000
Rural Community Development Resources Center for Business Development (The Center) is
requesting a $50,000 grant from the City of Yakima's 2018 allocation economic development
within the city of Yakima. These funds will be utilized to provide technical assistance for hard to
serve low/moderate income individuals that seek technical or financial assistance to start or expand
a microenterprise as a form of job creation or retention within the City of Yakima. Furthermore,
these funds can be used to serve as match dollars for additional funding into RCDR to continue
providing business technical assistance and financing to start up low income entrepreneurs.
The Center has an outstanding 26 -year track record in assisting microenterprises with relevant and
culturally sensitive business counseling & coaching, business plan development, educational
workshops and access to financing. In addition, the Center has been administering a revolving loan
fund for over 20 -years funds with a less than 3% default rate and 64% business retention making
the Center one of the few successful alternative lenders within Washington State. The Center is
also a certified Community Development Financial Institution (CDFI) by the Department of the
Treasury and is a certified SBA Intermediary Lender. These designations are hard to obtain and
maintaining that certification is based on outcome based performance and adequate and timely
reporting requirements.
The City of Yakima's continued supportto assist microenterprises to create jobs and assets for low
income individuals has played a role in the success of this program. With the CDBG dollars
awarded, low income individuals can set up microenterprises, employ low income individuals,
create assets and increase wealth. Over the last three years, the impact made in year on is 17 jobs
with an output of 1.63 million and has grown to 55 jobs with an output of 5.73 million. Additional
highlights include the support of 35 households within the City generating $97,906 in local tax
and $120,916 in state taxes due to household spending of $1.59 million. These impacts are
important to continue the growth of the local economy with quality jobs, revenues that turn in tax
revenues and an overall quality of life.
2018 City of Yakima CDBG Grant Funds Request Page 1 of 3
Direct
Loan
Borrower
Jobs
Business
Year
Loans*
Investment
Investment
Created/
Revenue
% LMI
Retained
2015
7
$405,993
$195,000
14
$1,904,810
56%
2016
6
$467,410
$228,500
25
$2,071,843
43%
2017+
3
$393,874
$70,000
24
$1,651,357
25%
Total
22
67,277
$493,500
41
$5,628,010
41%
Average
2018 City of Yakima CDBG Grant Funds Request Page 1 of 3
53
For the last three years, new customers had requested bigger loans of which employed more job
within the City of Yakima. The investments were 90% service business of which 95%
microenterprises still in business. In 2016, 63% were jobs created in the City of Yakima.
2015 2016 2017
Job
Created
P"'"` 21%
Job Retained 'log Job
37% Job Created
Job Retained Job Crea Retained
79% 63% 53/ 0 47%
The Center has invested $1,872,232 of loan funds of which 67% were in the City of Yakima, 67
jobs created with the average loan being $57,603 of which 61% were created in the City of
Yakima; 95% of jobs created were Latino communities.
City of Yakima Investment
r
2017� 2015
31% 32%
L '9
2016
7%
Leverage
2017 2015
36% 34%
The main need is access to capital to start a microenterprise & be able to sustain their families
during the off season. When RCDR started, its primary focus was to provide financial services
such as educational workshops to educate the customer on the rules & regulations of starting a
business, business plan development & served as a broker for loan packages to banks. This year
data as of 9/30/17 shows that of all the inquiries received are 88% Latinos, 47% are from the
City of Yakima and 59% of those are low income individuals residing within the city limits.
2018 City of Yakima CDBG Grant Funds Request Page 2 of 3
Inquiries
10
4%
8% 47
31%
N City of Yak ■ Lower Valley
v Upper Valley ■Tri -city
HUD Income Verification
59%
� Low -Moderate Inc (LMI)
54
It takes many hours of technical assistance for each entrepreneur which is inconsistent to the type
of financing they are applying for. The numerous hours spent is needed for long term success of
the entrepreneur with emphasis in business financial management and business tax reporting which
creates assets and long term sustainability and growth.
Strong partnerships with local banks whose representatives serve on the Loan Credit Committee
(LCC) to review and make recommendations on loan packages presented is key to RCDR's
success. These partnerships within the banking community have enhanced the ability to access
fund capitalization from private banks, state and federal funds.
The 2018 TA request will serve microenterprises that hire low income employees, which is
consistent with HUD CDBG regulations regarding the provision of microenterprise technical
assistance. The services will include individual business assistance and coaching, educational
workshops, business plan development, and loan packaging. Loan funds will be made from other
sources such as federal, state and or private banks will be made available for those microenterprises
that qualify and reside within the City of Yakima.
The objectives for 2018 are as follows:
• 24 startups and expanding microenterprises will receive TA
• 10 loan packages and business plans will be developed
• 2 business tax seminars for 15 attendees
• 2 personal financial literacy seminars for 18 attendees
• 8 loans will be closed and funded
Local support is greatly needed to continue providing the needed TA for microenterprises to be
successful, grow and create jobs for the local economy.
2018 City of Yakima CDBG Grant Funds Request Page 3 of 3
55
Elva Ruiz
dba B�:& E Auto Detailing
901 - go
MOM Mly,1=611, UGIN
•sure to pro7TI-e a personai re-Lerence
to continue receiving funding from the City of Yakima. In my capacity as business owner of B &
E Auto Detailing in the city of Yakima, I have worked with the Center closely in January 2015 to
purchase commercial real estate to expand my enterprise and build assets and provide job
opportunities. We also requested a 2 d loan in October 2016 to replace the roof on our business.
With the workshops and technical assistance of RCDR, I've since then increased my knowled.e
to better manage my business especially in bookkeeping, boosted revenue and opened doors that
might have not been available so promptly. My business was able to achieve tremendous financial
growth and helped me accomplish personal goals with their support.
B & E Auto detailing was able to provide employment to 2 full time employees and, who are low
income residents in the city of Yakima. My business also was able to provide employment for my
husband who now runs the business. No to mention that I was able to quit my job which allowed
me to focus more on my family and business.
RCDR's knowledge and dedication to encourage community development through self-
employment opportunities for low income entrepreneurs, has and will continue to allow business
like me to advance in the community, granting endless possibility for the future. I would have
never imagined that we would be where we are now without their help along the way.
Should you like to discuss my experience with RCDR or have further questions regarding this
letter, please do not hesitate to call me at the number listed above, I'd be happy to expand on my
support for the Center and its programs for low income entrepreneurs like me.
Sincerely,
Elva Ruiz
Owner
-M
Esmeralda Morfin
512 N 22nd Ave
Yakima, WA 98902
(509) 823-8360
qrl:j
Es un placer para mi dar una referencia personal para RCDR, el Centro para el Desaffollo de
Negocios, para continuar recibiendo fondos de la Ciudad de Yakima. Como propietario de
negocio de Peluqueria Esme en la ciudad de Yakima, he trabaj ado con el Centro reciente en
enero 2016 para obtener un pr6stamo para hacer arreglos a mi negocio.
los ingresos y he abierto puertas que quiz6s no estaban disponibles tan pronto. He podido me
lograr objetivos personales con su apoyo.
La dedicaci6n de RCDR para crear el desarrollo de la comunidad a trav6s de oportunidades de
autoempleo para emprendedores de bajos ingresos, ba permitido y continuard permitiendo que
personas como yo avancen en la comunidad, dando varias posibilidades para el futuro.
Si desea hablar sobre mi experiencia con RCDR o si tiene mds preguntas con respecto a esta
carta, no dude en Ilamarme al nAmero que estd arriba, seria un placer ampliar mi apoyo al Centr*
y sus prograrnas para emprendedores de bajos ingresos como yo.
Sinceraniente, J(Y e-"�
FORMT&MINIKIM
Antonio Mendez
dba A Trucking
5306 Mieras RD
Yakima, WA 98901
(509) 307-5800
H�r�
57
It's my pleasure to provide a personal reference for RCDR the Center for Business Developmeni
to continue receiving funding from the City of Yakima. As a business owner of A Trucking in the
city of Yakima, I have worked with the Center closely in 2015 to obtain a loan to purchase
equipment to increase my business.
I have participated in the RCDR's workshops that have allowed me increased my knowledge to
better manage my business & maintain a booking system. With the financial assistance I've
boosted revenue and opened doors that might have not been available so promptly. My business
was able to achieve tremendous financial growth and helped me accomplish personal goals with
their support.
RCDR's knowledge and dedication to encourage community development through self-
employment opportunities for low income entrepreneurs, has and will continue to allow business
like me to advance in the community, granting endless possibility for the future.
MWOMMMINI WHO 0
no J!j sit] am Low I rww-j n U-101 I I Lf
58
Rito lbarra
dba R & R Express
1315 Swan Ave
Yakima, WA 98902
(509) 728-0756
Es un verdadero placer para mi dar una referencia personal para RCDR, el Centro para el
Desarrollo de Negocios, para continuar recibiendo fondos de la Ciudad de Yakima. Como
propietario de negocio de R & R Express en la ciudad de Yakima, he trabajado con el Centro
reciente en enero 2017 para obtener un pr6stamo para comprar un Nuevo reefer. Aun que podia
ver trabajado con un banco decidi trabajar con RCDR por la ayuda que me dieron en aflos atrds
cuando comenc6 mi negocio.
Con los talleres y la asistencia t6cnica ofrecidos por RCDR, he aumentado mi conocimiento en
administrar mejor mi negocio especial mente en tener un sistema de contabilidad, he aumentado
los ingresos y he abierto puertas que quizds no estaban disponibles tan pronto. Mi negocio fue
capaz de lograr un tremendo crecimiento financiero y me ayud6 a lograr objetivos personales con
mum=
- ------------ -
Si desea hablar sobre mi experiencia con RCDR o si tiene mds preguntas con respecto a esta
carta, no dude en Ilamarme al n�imero que estd arriba, seria un placer ampliar mi apoyo al Centro
y sus programas para emprendedores de bajos ingresos como yo.
-M
Arturo & Maria G. Silva
dba BLT Transport
10202 Ahtanurn Rd
Yakima, WA 98903
(509) 426-0733
Es un verdadero placer para mf dar una referencia personal para RCDR, el Centro para el
Desarrollo de Negocios, para • recibiendo fondos de la Ciudad de Yakima. Como
propietario de negocio de BLT Transport en la ciudad de Yakima, he trabqjado con el Centro
reciente en noviembre 2016 para obtener un pr6stamo para reparar mi cami6n. Nosotros hemos
trabai ado con el Centro en el 2003. 2009 v 2011 Dara comDarar eauino v crecer nuestro =gocio.
Los talleres y la asistencia t6cnica ofrecida por RCDR, he aumentado mi conocimiento en
administrar mejor mi negocio especial mente en tener un sistema de contabilidad, he aumentado
los ingresos y he abierto puertas que quizds no • • tan •r Mi negocio fue
capaz de lograr un tremendo crecimiento financiero y me ayud6 a lograr objetivos personales con
39WWO
La dedicaci6n de RCDR para crear el desarrollo de la comunidad a trav6s de oportunidades de
autoernDleo i)ara emDrendedores de ba' I ue
,jos in�resos, ha jermitido continuard erm fienc o
Si desea hablar sobre mi experiencia con RCDR o si tiene mds preguntas con respecto a esta
... a
a Of I Ef NO M 9,74 -MI I! WA I OWN I I J'�j 01-19-N-JUIM I I
Arturo Y Maria G Silva
ProIID ietario